Debt-free?

Chuckmyster said:
Clever, back in our day we had 4 speed gearboxes, no head rests and black bumpers while our rich friends had 5 speed, 4 headrests, colour coded bumpers and power steering :laugh::ROFL::laugh::ROFL: The snowflake millenials of today will never understand how spoilt they are with their first car costing>R200k :ROFL:
Click to expand...
My first car cost me R400 for a VW type 3 Sedan.
 
Chuckmyster said:
why do all the people here that rent say they're debt free? debt free means you live in a home in your name that is paid for, finish and klaar !!!!!!
Click to expand...

Definitely not.

Property ownership in SA is not as glorious as most people think and while there certainly are properties that can make you a tidy sum in the long run through buy and sell, it's often a case-by-case scenario at best.

Renting has a stigma attached. Renters are seen as people who can't afford their own homes. But the exercise of paying someone else for a roof over your head and investing the extra money you have can be a lot more profitable.

I think it also comes down to what your needs and preferences are. Some people are willing to spend more on property. I personally have realized there are various other ways to become more wealthy, faster. I have been on both sides of the fence and unfortunately owning has been much more expensive and more stressful. However, as I say, to each his own.

But renting is as much a debt as is having to fill your car with gas.
 
Superman-7 said:
Definitely not.

Property ownership in SA is not as glorious as most people think and while there certainly are properties that can make you a tidy sum in the long run through buy and sell, it's often a case-by-case scenario at best.

Renting has a stigma attached. Renters are seen as people who can't afford their own homes. But the exercise of paying someone else for a roof over your head and investing the extra money you have can be a lot more profitable.

I think it also comes down to what your needs and preferences are. Some people are willing to spend more on property. I personally have realized there are various other ways to become more wealthy, faster.

But renting is as much a debt as is having to fill your car with gas.
Click to expand...
makes no sense to me at all, but i dont mind, i didnt pass Matric :)
 
I have a bond and a vehicle to pay off. Have another paid off vehicle, a zeroed credit card and zeroed overdraft. Holding on to these last two only because banking rewards require them.

Quietly considering selling what we have for a decent profit and buying or renting smaller.

Have more surplus now than ever before but lately the minimalist lifestyle is looking more and more appealing. Will also allow maxing RAs and two TFSAs, as well as other investment vehicles.
 
Superman-7 said:
Definitely not.

Property ownership in SA is not as glorious as most people think and while there certainly are properties that can make you a tidy sum in the long run through buy and sell, it's often a case-by-case scenario at best.

Renting has a stigma attached. Renters are seen as people who can't afford their own homes. But the exercise of paying someone else for a roof over your head and investing the extra money you have can be a lot more profitable.

I think it also comes down to what your needs and preferences are. Some people are willing to spend more on property. I personally have realized there are various other ways to become more wealthy, faster. I have been on both sides of the fence and unfortunately owning has been much more expensive and more stressful. However, as I say, to each his own.

But renting is as much a debt as is having to fill your car with gas.
Click to expand...
Agree 100%
 
I consider myself debt free but would fail the OP test. I use my credit card for almost every purchase and then pay it off in full to avoid interest payments. I have a Pick n Pay store account which I do the same with.

I have a decent deposit but will need a bond when I buy a house.

My car was paid for in cash and I will probably do the same when I replace it.
 
Superman-7 said:
I have a bond and a vehicle to pay off. Have another paid off vehicle, a zeroed credit card and zeroed overdraft. Holding on to these last two only because banking rewards require them.

Quietly considering selling what we have for a decent profit and buying or renting smaller.

Have more surplus now than ever before but lately the minimalist lifestyle is looking more and more appealing. Will also allow maxing RAs and two TFSAs, as well as other investment vehicles.
Click to expand...
Loving the more minimalist lifestyle myside.

Time and money get put where value is added to my life. This cut non-essential spending right down!
 
JayM said:
The days of cheap rates & taxes are over. As are the days of 10% rent increases every year. Case in point - my rent hasn't increased in 5 years. Property in SA is becoming a liability, even if it's paid for.
Click to expand...

Hey, I'll take over your paid-for liability any time. let me know. :p
 
RedViking said:
You grandmother. Your father. Your neighbour. With debt moving into the doghouse won't erase your debt.
Click to expand...

Using the same logic of moving back in with parents, you sell the house and erase your debt. Maybe even make a capital profit.
 
RedViking said:
Depends how bad in debt you are. They bank usually sell it for you and you are in deep crap.
Click to expand...

Now you are stretching. That's when you are defaulting on your home loan. A totally different scenario.

And I forgot to say, by moving back in with your parents, you may be removing your debt/rent liability, but now you are a liability to someone else :)
 
Splinter said:
Now you are stretching. That's when you are defaulting on your home loan. A totally different scenario.

And I forgot to say, by moving back in with your parents, you may be removing your debt/rent liability, but now you are a liability to someone else :)
Click to expand...
Well now that is not my problem. They want to bring a poor person into the world, they need to deal with it. :p
 
Curious to know from those who were debt free , did you manage to survive during the Pandemic or have you taken some debt to survive.
 
Debt free. Single. No kids. Look after elderly parent. Own my car - 2005 BMW 3 Series. Owned house, but sold it and currently renting. Most of my money goes towards investments (offshore, TFSA and tiny amount in RA) and some to help family out. No contracts either. Use CC every month (groceries, bills, etc...) and paid in full on payday.

Pandemic - jumped jobs. Got pay bump back in 2021 and am happy with WFH.

Picture would be far different with wife and kids.
 
With interest about equal to inflation it makes sense to take on debt.

Why safe and wait for something when you can have it now snd the cost is the same
 
Paid off my car and house 10 years ago. I paid my car off 1st from my home loan. Then with the extra saving of not paying for the car, I put everything I could into my home loan and paid it off. What helped a lot was that I sold my 1st house for x2 the purchase price after 5 years of owning it.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X